Second-quarter profits at fragrance supplier International Flavors & Fragrances Inc. declined 14.5 percent to $67 million, or 83 cents a diluted share, from $78.4 million, or 87 cents, in the same period a year ago, on higher interest expense related to borrowings for an accelerated share repurchase program last year.
IFF, which posted results Wednesday night, reported that, excluding special items like a tax adjustment and employee separation costs, adjusted earnings per share for the quarter ended June 30 were 81 cents versus 72 cents a year ago. Wall Street analysts were expecting earnings per share of 80 cents, according to Yahoo Finance. Quarterly revenues were $636.1 million, up 10.9 percent from $573.7 million last year, a 4 percent gain in local currencies.
Employee separation costs of $3.4 million were primarily due to the departure of IFF’s senior vice president and chief financial officer, Douglas J. Wetmore, who stated last month he would step down to pursue other career opportunities. The company named Richard A. O’Leary, 48, as its interim cfo on Thursday.
Second-quarter interest expense more than doubled to $18.5 million from $8.4 million in the year-ago period, a 120.9 percent jump, sending pretax earnings down 10 percent to $87.2 million from $97 million last year.
While sales at IFF’s fragrance business unit were up by 8 percent during the second quarter to $346.3 million, a 1 percent uptick in local currencies, chairman and chief executive officer Robert A. Amen noted during a conference call with analysts that North America remains a challenging market. North American fragrance sales declined by 11 percent, which was an improvement from a 23 percent drop during the first quarter.
By region, fragrance sales were up 18 percent in greater Asia, 15 percent in Europe and 14 percent in Latin America.
“Our non-U.S. sales in the second quarter amounted to 75 percent of total revenue, with more than one-third coming from the world’s emerging markets,” said Amen.
Fragrance accounted for 54.4 percent of quarterly sales, while the remainder was generated by the firm’s flavors business.
For the first half, profits were down 12.8 percent to $123 million, or $1.52 a diluted share, from $141.1 million, or $1.56, last year. Interest expense totaled $36.8 million, a 120 percent increase from $16.7 million, while sales reached $1.23 billion, an 8.2 percent rise from $1.14 billion during the prior year.
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews
@prada is introducing a new project at its men’s fall 2018 show this Sunday: “Prada Invites.” The fashion house invited four celebrated creative minds – @ronanaerwanbouroullec, Konstantin Grcic, @herzogdemeuron and @rem.koolhaas – to each create a unique item with its iconic nylon material. The designs will be unveiled on the runway show, which will take place at the company’s warehouse in Viale Ortles 25. #wwdfashion #mfwm (📷: @martinocarrera)
@kering_official is spinning off its stake in puma in an effort to focus on its luxury brands, the brand operator announced yesterday. “We are proud to have supported the turnaround of Puma, which now has unrivaled capabilities to take full advantage of the specific dynamics of its global markets and is poised to achieve substantial growth,” said François-Henri Pinault, Kering’s chief executive officer and chairman. Artémis will become a “long-term strategic shareholder” of Puma with a 29 percent stake. #wwdnews #wwdfashion (📷: @jilliansollazzo)
The fashion world mourns for celebrated street style photographer, Nabile Quenum, who died at age 32 in Paris.
Quenum, creator of the fashion blog “J’ai Perdu Ma Veste,” was a fashion week fixture, and regularly shot for New York magazine’s The Cut, among other outlets, and brands such as Louis Vuitton, Moncler and Adidas. He was also actively involved in the #NoFreePhotos initiative, which kicked off in the fall. Read more about Quenum in @kbsmoke's story on WWD.com. #wwdnews
@verwanggang and @maisonladuree have teamed up on a dessert collab called Vera Wang Pour Ladurée. The collection, which launched this week, features a specialty macaroon, as well as a wedding cake inspired by one of the designer’s gowns. “I could not imagine a more delicate or sophisticated creation to grace any couple’s celebration,” said Wang. #wwdfashion